India’s Tata Chemicals has approved two projects for capacity expansion at its manufacturing facilities in Gujarat and Tamil Nadu.
The companys board approved an investment of Rs135 crore for expanding dense soda ash manufacturing capacity at its Mithapur plant, Gujarat, to meet growing demand driven by sustainability applications. The plant currently operates at 90% capacity utilisation, with an existing capacity of 1,091 kilotonnes/year. The proposed expansion will add 350 kilotonnes/year of soda ash capacity.
The project is expected to be completed over the next 24 months.
Additionally, the board also approved an investment of Rs 775 crore for expanding precipitated silica manufacturing capacity at its Cuddalore plant,
Tamil Nadu, aimed at catering to growing demand for specialty silica in rubber and automotive tyre industries.
The plant currently has a capacity of 13.8 kilotonnes/year with 88% capacity utilisation. The proposed expansion will add 50 kilotonnes/year of precipitated silica capacity.
The company also said that it plans to finance both expansion through internal accruals or other options.
With the expansion of soda ash, the company could be able to cater to the growing demand driven by sustainability applications. While it said that with silica expansion, it can address increasing demand in the rubber and automotive tyre industry.